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Enter the "2005 Penny Arcade Expo Nerd Rap Battle tournament!"
An amateur rap battle tournament designed to test the mettle of all of the Penny-Arcade readers that also tread on the M.C. side of things

The first few rounds could be in the game rooms with copies of "Get on da mic" / with a kareoke machine style set up with a couple of generic beats (Whichever would be easiest), the next few round could be in the smaller auditorium, and the final bitter duel could be on Saturday to open up the show!

as long as I may record all of it and everyone signs over rights of all material recorded to me to be used as I see fit I will submit a mystery prize. I have a plan for something involving pax and this may fit into the puzzle.

I'd like it to be more about the hip-hop, but truthfully the first round or two will be much like how you described it. That's how almost all competitions open to the public are though, the first few rounds are horrible, but once you get into it and the talented people make it through than I see it becoming something that people would enjoy watching for the skill of the M.C.s rather than the "So bad it's good-ishness"

I totally don't see anything wrong with you taping it, but you might want to offer up a cops style dot over head option for those that don't want to be taped.